HSBC bids farewell to dollar supremacy

Doesn't matter.

All you have to do is stage a little event that upsets enough American citizens. They'll be more than willing to go to war. How many Americans supported invading Afghanistan eight years ago?

 

Frankly, with aircraft carriers, cruise missiles, longrange bombers, predator drones, nucelar submarines the value of landbased fleets is not all that important. So if China attacks Japan and we are not there to help, then Japan is in the toilet.

If China attacks South Korea and they do not want us there, Korea is in the toilet.

Let the Asian countries spend the military $$$ to build their own militaries. They will soon learn.

If Japan and China do not like things, it is time to flatten out the trade deficit with high tariffs on all their goods. There is nothing either country produces that we could not get elsewhere of make ourselves

 

I love how hostile Americans are to the idea that their currency could collapse and they instantly take it out on any foreigners that criticize them, this is why I'm freaking reminded of the Roman Empire a lot with these guys who were extremely xenophobic. Even the democrats are beginning to realize what a sh*tstorm the economy is coming into, it's only the administrations of either parties left now that seem so blindly in support of this system.

Wake up and realize you aren't the all powerful nation that you think you are, you'll go through a lot less pain and suffering for it.

 

duh, we are going to Iran. We are starting to build our PR case right now at G20. Europe may even come with us. All of a sudden we are bringing up a nuke plant they didnt disclose that we have known about for years. They have been saving this juicy detail for the right occasion.

I met 2 Iranians last night. Turns out they are Persians and not Arabs. Soon they will be Americans. Its so fucked but we are going in and soon.

 

No.

I would still practice patience even if I were to fall into hardship - sitting among ashes and potsherds, sores covering my body. I will not forgo my faith. I will put down the rifle and pray :

Oh Lord! Why does this happen to me?
I keep to the law.
I obeyed the governor.
I paid all my bills.
I paid all taxes.
I did no usury.

 

CNBC: US May Face 'Armageddon' If China, Japan Don't Buy Debt

The US is too dependent on Japan and China buying up the country's debt and could face severe economic problems if that stops, Tiger Management founder and chairman Julian Robertson told CNBC.

"It's almost Armageddon if the Japanese and Chinese don't buy our debt,” Robertson said in an interview. "I don't know where we could get the money. I think we've let ourselves get in a terrible situation and I think we ought to try and get out of it."

Robertson said inflation is a big risk if foreign countries were to stop buying bonds.

“If the Chinese and Japanese stop buying our bonds, we could easily see [inflation] go to 15 to 20 percent,” he said. “It's not a question of the economy. It's a question of who will lend us the money if they don't. Imagine us getting ourselves in a situation where we're totally dependent on those two countries. It's crazy.”

Robertson said while he doesn’t think the Chinese will stop buying US bonds, the Japanese may eventually be forced to sell some of their long-term bonds.

“That's much worse than not buying,” he said. “The other thing is, they're buying almost exclusively short-term debt. And that's what we are offering, because we can't sell the long-term debt. And you know, the history has been that people who borrow short term really get burned.”

The only way to avoid the problem, he said, is to "grow and save our way out of it."

"The U.S. has to quit spending, cut back, start saving, and scale backward," Robertson said. "Until that happens, I don't think we're anywhere near out of the woods.”

Robertson is not very optimistic about the short-term.

“We're in for some real rough sledding,” he said. “ I really do think the recession is at least temporarily over. But we haven't addressed so many of our problems and we are borrowing so much money that we can't possibly pay it back, unless the Chinese and Japanese buy our bonds.”

http://www.cnbc.com/id/33004753

 

I wonder about those people who are considered experts by the media and manage so much money but make such extraordinary stupid statements. Life must be a totally random process for them to have gotten where they are...

I have something to say to those people, a short and quick lesson in international economics and commerce.

China invests in the USA using currency it receives from USA in exchange for goods produced in China and purchased by USA consumers. You cannot do anythng with USD other than invest in in US denominated instruments if you are not planning to upset international commerce. If China attempts to exchange USD to other currencies then (a) USD will drop putitng upward pressure to China currency (b) USA will retaliate by raising import taxes on Chinese goods. The only option China has for keeping its economy going and not upsetting its biggest customer is to keep buying American bonds. Any other action will upset the balance, will force Chinese economy into a recession and probably into a severe depression.

It is to the best interest of the Chinese for USD to be strong and for USA to keep paying interest on the obligations they purchase while they are building their infrastructure and the economic activity is spreading from the shores to the rest of their vast country. It is to the best interest of the Chinese for the USA economy to be healthy and strong. This translates into more economic activity for them, higher employment rates and low inflation.

I really wonder about those high profile people that spew crap whenever they open their mouth. It is a really peculiar fact of life...

 

for a while, yes
if we don't get our own house in order though.......


anyone for term limits in both houses of congress?

 

Didn't you hear? The "new global economy" is going to have all the commodity based economies exporting steel to each other in an infinite loop.

Never mind the fact that very little innovation comes out of the "emerging" markets. But no worries, like I said, they'll just export steel and then turnaround and import it and then turn around and export it and then turn around and import it.

PROBLEM SOLVED!!

 

Barack Obama and his team have failed the USA with $82 Trillion of debts on and off the books.

http://usdebtclock.org/